Fundamentals of Information Systems and Systems Development Introduction

Inaccurate accounting records often contribute to business failures. Failure to understand accounting information can result to poor business decision. -G.V.Lising Jr.

Information
Non-quantitative Information Quantitative Information
Non-accounting Information Accounting Information
Operating Information Financial Accounting Management Accounting Tax Accounting

THE NEED FOR INFORMATION

QUANTITATIVE is information expressed in numbers that is

NON QUANTITATIVE samples are visual impressions, conversations, television progs etc

Accounting is primarily concerned with QUANTITATIVE INFO

Accounting is one of the several types of quantitative information Four categories of information operating information financial accounting information management accounting information tax accounting information

INFORMATION

Non-quantitative information

Quantitative information

Accounting information

Non accounting information

Operating information

Financial accounting

Management accounting

Tax accounting

 OPERATING INFORMATION constitutes by far the largest quantity of accounting information.

FINANCIAL ACCOUNTING INFORMATION is intended for both managers and also for the use of parties external to the organization, including shareholders (and trustees) in profit organizations), banks, and other creditors, government agencies, investment advisers, and the general public.

MANAGEMENT ACCOUNTING INFORMATION accounting information specifically prepared to aid managers. This information is used in three management functions planning implementation control

PLANNING
is the process of deciding what actions should be taken care in the future. An important form of planning is BUDGETING the process of planning overall activities of the organization for a specified period of time, usually a year. A primary objective of budgeting is to coordinate the separate plans made for various segments of the organization so as to ensure that these plans harmonize with each other

Planning involves making DECISIONS

recognizing the problem specifying and ranking the criteria to be used to determine the best solutions identifying alternative ways of addressing the problem or opportunity analyzing the consequences of each alternative comparing these consequences

 IMPLEMENTATION making plans does not itself ensure that managers will implement the plans. Each manager also must make more detailed implementation plans to encompassed in the budget CONTROL manage / perform properly

Accounting information is used in the control process as means of communication motivation attention getting appraisal

System
Set of detailed methods, procedures, and routines established or formulated to carry out a specific activity, perform a duty, or solve a problem. BusinessDictionary.com

Elements of System
Inputs and outputs Processor Control Environment Feedback Boundaries/interface

Planning

Implementation Appropriate action

Control

Feedback
Plan revision